S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
One year after buying a failed bank, New York Community Bancorp is struggling
Dell, NetApp rise; Ginkgo Bioworks, New York Community Bancorp fall, Friday, 3/1/2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
How major US stock indexes fared Friday, 3/1/2024
China pledges to increase opportunities for foreign companies as it seeks to boost its economy
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
One year after buying a failed bank, New York Community Bancorp is struggling
Dell, NetApp rise; Ginkgo Bioworks, New York Community Bancorp fall, Friday, 3/1/2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
How major US stock indexes fared Friday, 3/1/2024
China pledges to increase opportunities for foreign companies as it seeks to boost its economy
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
One year after buying a failed bank, New York Community Bancorp is struggling
Dell, NetApp rise; Ginkgo Bioworks, New York Community Bancorp fall, Friday, 3/1/2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
How major US stock indexes fared Friday, 3/1/2024
China pledges to increase opportunities for foreign companies as it seeks to boost its economy
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
One year after buying a failed bank, New York Community Bancorp is struggling
Dell, NetApp rise; Ginkgo Bioworks, New York Community Bancorp fall, Friday, 3/1/2024
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
How major US stock indexes fared Friday, 3/1/2024
China pledges to increase opportunities for foreign companies as it seeks to boost its economy
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches

Ford Races Higher: Has The Stock Finally Bottomed?

Ford Races Higher: Has The Stock Finally Bottomed? Ford NYSE: F may be in “buy the dip” mode, judging by its year-to-date decline of 38.42%. 

Since rebounding from its July 5 session low of $10.61, the stock is up 18.66%. Does that mean the stock has bottomed and it’s time to jump back into the driver’s seat?

Not so fast.

Even if a stock appears to be in rally mode, it’s wise to consider other factors that may affect your return, particularly if you’re considering a swing trade rather than a long-term hold. 

For starters, if you’re eyeing a company, check whether it’s reporting earnings soon. Ford is slated to deliver second-quarter results on July 27. 

According to MarketBeat earnings data, Wall Street expects Ford to earn $0.44 per share. Revenue is seen coming in at $34.29 billion. Both represent growth over the year-ago quarter.

Ford missed earnings estimates in the past two quarters. In addition, earnings slowed in the past three quarters, on a year-over-year basis. 

Traditional rival General Motors NYSE: GM also suffered earnings slowdowns, while more trendy Tesla NASDAQ: TSLA has been growing income at triple-digit rates in the past five quarters. Tesla’s revenue grew between 39% and 98% in each of the past seven quarters. 


Does that disparity suggest that Ford and General Motors are doomed to lag Tesla’s all-electric vehicle strategy?

Revving Up The F-150 Engine 

Ford management hasn’t fallen asleep at the wheel. The company is rolling out the 2023 Ford F-150 Raptor R, a pickup truck that boasts a 700 horsepower engine. Ford fanboys and girls will pay a hefty price for that, with the pickup carrying a minimum list price of $109,145. While buyers have grown accustomed to pricey EVs, this fossil-fuel-powered vehicle is in a price class of its own. 

Of course, it remains to be seen whether that price can attract enough buyers to make the product a hit, or whether it’s just a flashy marketing gimmick. 

Not everything at Ford is speeding down the highway. The company is recalling 100,680 hybrid vehicles, including the Ford Escape, Lincoln Corsair and Ford Maverick, due to the potential for engine compartment fires. 

Even so, the stock climbed 5.27% Tuesday in heavier-than-normal trading volume. That marked Ford’s third session in a row with gains. 

Analysts’ consensus rating on Ford is a “hold,” with a price target of $17.94, a 42.53% upside over where the stock is currently trading. Remember, the price target itself should be viewed separately from the analyst rating. The price target can represent a longer-term view, meaning investors may have to wait 18 months before the stock reaches - or fails to reach - that target. A lot can happen in 18 months, including purchasing a stock that languishes, while incurring an opportunity cost from investment ideas you rejected.

For the year, Wall Street has pinned earnings at $1.92 per share, a 21% gain over 2021. Next year, that’s seen growing another 6%, to $2.03 per share. 

Ford Vs. The S&P 500

So how does Ford power up, when compared to the broader market? 

It’s lagging its index, the S&P 500, which is down 20.20% so far this year. In addition, the stock’s shorter-term moving averages, such as the 10-day, 21-day, and 50-day lines, are below the longer-term 200-day line. That’s been the case since April. 

That type of weakness isn’t necessarily the best time to buy into a single stock, because you’re adding risk before the stock has proven it’s in a sustained rally. In addition, a broader market and industry-specific weakness can also drag down a stock, even if it seems like it’s beginning a rally. 

On a brighter note, Ford closed above its 50-day line Tuesday, for the first time since January. In addition, the stock gapped up at the open and held its gains in each of the past three sessions.

Nonetheless, it’s always the case that a single stock carries greater risk than a basket of stocks, and if you’re going to make a purchase, it better be something you have a high degree of conviction about. 
Ford Races Higher: Has The Stock Finally Bottomed?

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Ford Motor (F)
4.7567 of 5 stars
$12.45+0.0%4.82%11.52Hold$13.81
General Motors (GM)
4.5669 of 5 stars
$40.98flat0.88%5.61Moderate Buy$50.66
Tesla (TSLA)
4.3791 of 5 stars
$202.64+0.4%N/A47.02Hold$219.89
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Kate Stalter

About Kate Stalter

  • stalterkate@gmail.com

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Experience

Kate Stalter has been a contributing writer for MarketBeat since 2021.

Additional Experience

Series 65-licensed investment advisor, financial advisor, Blue Marlin Advisors; investment columnist for Forbes, U.S. News & World Report

Areas of Expertise

Asset allocation, technical and fundamental analysis, retirement strategies, income generation, risk management, sector and industry analysis

Education

Bachelor of Arts, Saint Mary’s College, Notre Dame, Indiana; Master of Business Adminstration, Kellogg School of Management at Northwestern University

Past Experience

Founder, financial advisor for Better Money Decisions; editor, stock trading instructor for Investor’s Business Daily; columnist, podcast host, video host for MoneyShow.com; contributor for Morningstar magazine


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